Question
‘A’ and ‘B’ started a business by investing
certain sum in the ratio 6:5, respectively for 7 years. If 12% of the total profit is donated in an orphanage and A’s share is Rs. 8820, then find the total profit generated from the business.Solution
Since, ‘A’ and ‘B’ invested their sums for equal period, therefore, ratio of the profit received by ‘A’ and ‘B’ will be equal to the ratio of sum invested by them i.e. 6:5, respectively Let the total profit received by them be Rs. 100x Therefore, profit distributed between ‘A’ and ‘B’ = 0.88 × 100x = Rs. 88x Profit received by ‘A’ = 88x × (6/11) = Rs. 48x According to the question, 48x = 8820 => x = 183.75 Therefore, total profit received by ‘A’ and ‘B’ = 100x = Rs. 18375
Consider the following:
Statement 1: There exists an inverse relationship between market rates of interest and price of bond
Statement 2: ...
State Hotelling's Rule (or the Hotelling Principle) for the extraction of a non-renewable resource. What is the economic significance of the "user cost"...
A central bank decides to increase money supply. For a given price level, the LM curve is expected to
According to the Travel and Tourism Development Index (TTDI) 2024 report published by the World Economic Forum (WEF), India is ranked
If the correlation coefficient (r) between two variables is -0.85, it indicates:
According to the Mundell-Fleming model for a small open economy with flexible exchange rates, if the Federal Reserve cannot alter domestic int...
The McDougall Rule, in the context of public finance, primarily suggests that:
Assertion (A): Use of goods and services from which one can be excluded are pure private goods.
Reason (R): Such goods and se...
The 'Vertical Equity' principle of taxation implies that:
The Travel Cost Method (TCM) is a Revealed Preference Method. What type of environmental good or service is it typically used to value, and what actual ...
Relevant for Exams:
